Bluechip Business Award
 

Past Winner Stories

Harlan Bakeries

www.harlanbakeries.com
Consumer tastes are constantly changing, and nowhere is that more evident than in the food service industry. To successfully transform its company from a small, regional supplier to a diversified, wholesale baking company, Harlan Bakeries needed to react quickly to changing trends and have the proper systems and controls in place to support accelerated growth.

A family-owned business founded in 1990, Harlan Bakeries supplies wholesale bagels to supermarkets, delicatessens and club accounts. The company has grown from a regional producer of frozen and refrigerated bagels to a full-line baking company serving hundreds of in-store bakeries and thousands of national food service units. Today, Harlan produces more than 140,000-dozen bagels per day, with production running five or six days a week. The company operates four plants with nearly 500,000 square feet of combined production space.

"Our greatest challenge has been managing the growth," says President Hugh P. Harlan. "To remain viable and enhance competitiveness in today?s marketplace, you need to be able to adjust to lifestyle and demographic changes. Consumer tastes are constantly changing, which means that we continually change our technology and marketing strategies. Our goal is to have a full-line bakery that provides a one-stop source for our diverse customer base."

Harlan believes that transformation lies squarely in the hands of his people. "The real strength of any corporation lies in its people," he explains. "We have surrounded ourselves with people willing to become a team and make a difference; who can quickly respond to, understand and meet our customers' needs. Employees must be dynamic enough to manage constant change, and that's not something that happens overnight. It requires leadership and cultivation."

To that end, Harlan Bakeries motivates its employees in several unique ways. In addition to formal training, financial incentives, employee meetings and special events, the company offers an innovative pay program called 30/40. Employees work 30 hours and get paid for 40 hours.

Designed by Dr. Ron Healy, the trademarked 30/40 program is based on the theory that a four-shift plant can run as efficiently and possibly more so than a three-shift operation. It is a self-managed, incentive-based program to reward employees and minimize distractions. If the employee is more than a minute late, he does not get his 10-hour bonus. Not surprisingly, Harlan reports "very few employees show up late."

Another key to the bakery's growth management plan involved centralizing operations in Avon, Ind. The company has an information technology infrastructure plan to support business processes and develop core business transaction systems. Accounting and finance, customer service, information technology, human resources, payroll and distribution are integrated into a single system to enhance production and distribution. Equipment and system upgrades are also underway to increase capacity and allow for new customers and opportunities.

The company continues to evaluate opportunities to purchase additional businesses and is looking into foreign markets to maintain future growth. This diversification brings added complexity to the company's operations, but is necessary to achieve the objective of becoming a full-line in-store bakery supplier and contract manufacturer.

Harlan is confidently optimistic. Even with our rapid growth, the niche we can give our customers is exactly what they want. "One of our strengths is the science of baking. Our customers look for customized products–a product unique to their operation. We can match or exceed their expectations."